Donald Trump, Jeremy Segel, Ray Lucia discussed on The Ray Lucia Show
Relax. It is the Ray Lucia program helping you make better money moves is one of my favorite meal. Young from back in the day. What was it like nineteen sixty nine? Just after the shooting. Yeah. Well, we don't listen to the words because people will get freaked out. But the guitar lick is pretty darn good. Isn't it? Don't listen to these words. Drums tax cuts, not sugar high president Donald Trump's corporate tax cuts. Well, have a lasting positive impact on economic growth and the stock market so says the chief investment officer of the hammer for trust when you have tax reform like this. It's not a sugar high. It has a multi year affect you. See I happen to be in this camp. There's a whole lot of people that aren't, you know, the Nancy Pelosi crumbs, of course, anything coming from the left. This tax thing was a total debacle, and they're going to undo it very very soon when they take the house and the Senate as they believe they will. But they're wrong, but they are wrong because this tax cut is different. Because it's making all those corporations those billionaires, even richer, and that's just. You know, it's it's horrible. It's horrible for everybody. Except all the people that work for those fine companies. You see what I'm saying the middle class anyway, allow me. This fellow from the Haverford trust. Said this. Under President George W Bush in two thousand and one his tax cut was a sugar high by focusing mainly on relief to families which the families desperately needed. I'll grant you that the two thousand and three plan which largely benefited business had a multi year impact. And that is where we are today. And other words when you especially if you permanent is as they did with the corporate tax cuts. That gives corporations visibility. What companies hate more than anything is not knowing where they're going to be in a year two years three years when they permanent ties the corporate tax rates corporations now can feel free to reinvest a lot of that extra money. Remember when you drop your corporate rate from thirty five percents to twenty one percent, you just freed up a lot of real cash. And those particular corporations large and small. Have more money to work with and hopefully that money will find its way into your pocket. Somehow, maybe you're a small business owner. Maybe you're a working stiff, maybe you're an employee. Maybe you're a retiree. It will have an impact the lower tax rates will have an impact on everyone. But because of the corporate tax cut that is sustainable. Remember, we talked about this the other day, and this number was shocking to me when you look at this four point two percent growth rate. And incidentally, the Atlanta fed which was a little high on their last calculation, but they were in the fours when a lot of others were in the threes. They're expecting four point four percent growth for the next quarterly output. But having said that it was reported somewhere. I forget where but it was reported that if all we did was have one quarter of four point two percent growth, and that's it. And then we went back to the dismal Obama years of one point nine percent new normal growth four point two percent back to one point nine that that over the next decade adds six trillion dollars to the economy six with a t trillion which would mean if we have another quarter of four percent growth that added twelve trillion dollars to the economy. So I get the fact that you still have huge deficits. I get the fact that social security and Medicare are slowly or not so slowly going broke and something needs to be done. But one of the things that Trump promised. And I was I'll be the first one to admit I was somewhat critical not even somewhat. But critical of this statement is he basically implied that we're going to grow our way out of this. And I was shaking my head saying, you you can't grow your way out of the interest on the debt problem, the military spending problem the social security problem the Medicare problem. I mean, those things that's just the way it is. And now we're spending. I don't know one one and a half trillion dollars on the military in the military and the next two years where is that money come from? Well, they're showing us he goes on critics of Trump's corporate tax cut which passed last year with an overall the individual tax code argued these measures won't be anything more than a quick shot in the arm. They also believe that any boost to what some consider an already overheating economy may backfire with the Federal Reserve raising interest rates more aggressively to contain inflation and thus slowing growth and creating headwinds for the stock market. Maybe I mean, we've seen that before we've seen the fed overreact in the past and raise rates too fast, and that sends us into a recession. But it just doesn't seem to be logical. Not in my mind. Not even Jeremy Segel's mine who warns of a correction add operative word. He didn't say crash. He said what he.